First Asset Management acquired by U.S. firm

(April 19, 2005) Affiliated Managers Group has reached an agreement to acquire 100% ownership of Toronto-based First Asset Management in a cash and stock deal valued at $306 million.

First Asset is one of Canada’s largest independent management firms, with more than $29 billion in assets under management. The agreement includes First Asset’s equity interest in Foyston, Gordon & Payne, Beutel, Goodman & Company, Montrusco Bolton Investments, Deans Knight Capital Management, Triax Capital, Covington Capital, and First Asset Advisory Services. The affiliates will continue to operate independently, AMG said in a statement.

“This is a very exciting day,” said First Asset president Michael Simonetta. “AMG is a strong company whose strategy and operating philosophy are parallel to ours, with a partnership approach that preserves and enhances its affiliates’ incentives for continued growth through retained direct equity ownership, while maintaining each firm’s distinct culture and operating autonomy.”

Simonetta will serve as president of the Canadian office of AMG, responsible for the growth and development of the business.

Founded in 1993, Boston-based AMG has investments in a large group of mid-sized investment management firms, including Tweedy Browne and Third Avenue Management. AMG’s business strategy is to generate growth through its network of affiliates.

“We are pleased to announce our agreement to acquire First Asset, and our prospective partnerships with First Asset’s affiliates, which are an impressive group of asset management firms and among the most highly-regarded independent mid-sized investment businesses in Canada,” said AMG president Sean Healey.

AMG will pay 90% of the $250 million US purchase price in cash and the remainder in stock. The takeover is expected to close in the third quarter, pending closing conditions and regulatory approval.

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com